Node40 CEO: Hard Fork Might Drive Bitcoin Price Up
Perry Woodin, the CEO of a Bitcoin tax accounting firm, said that the upcoming hard forks of Bitcoin might drive the price up just like the Bitcoin Cash phenomenon did.
The coming weeks are going to be rather turbulent as Bitcoin is going to experience not one, but two hard forks.
First, there’s the Bitcoin Gold fork which we can expect to happen on October 25, 2017, as block number 491,407 goes through. Then, there’s the SegWit2x split which is scheduled to take place on November 16, 2017.
While many people are worried that Bitcoin might experience trouble due to the launch of both of these forks, Perry Woodin—CEO of Node40, a firm that calculates Bitcoin tax liability—is keeping a cool head through all the chaos.
"If we let history be our guide, the run-up to November's fork should result in a significant flow of value out of alt-coins and into Bitcoin. We're already seeing this happen, and it is driving the price of Bitcoin to all-time highs,” he told The Street today.
Woodin’s statement was in reference to the Bitcoin Cash fork when billions of dollars poured into the cryptocurrency’s market capital just after it launched.
"The big difference this time is people who missed out on the promise of free money during the BCH split are eager to play in the second round with Bitcoin Gold," he said.
Not everyone shares Woodin’s optimism however. Eddy Travia, the CEO of Consilium, a blockchain startup accelerator, said that hard forks will add “multiple Bitcoins”, which “add to the complexity in a way that would discourage [investors] from going forward.”
The lead-up to both events has had no shortage of drama, with Bitcoin Gold forking before its launch and causing a considerable amount of chaos due to the incompleteness of the project. And then, BitMEX derided the SegWit2x split.
The price of Bitcoins on the market against the US dollar will likely experience some level of fluctuation as a result of these hard forks, but the community cannot agree on whether it will rise or fall.
Looking at how the Bitcoin Gold fiasco went today, the idiom “buyer beware” comes to mind.